- Michael Saylor-backed Strategy announced a major expansion of its capital-raising programs totaling up to $44.1 billion on Monday.
- Strategy also increased authorized STRC shares to 282.6 million and cut authorized STRK shares to 40.3 million.
- The announcement highlighted the continuing shift in Strategy’s funding mix.
Strategy (MSTR) shares gained in morning trade on Monday after the company said it was expanding its capital-raising programs.
The company announced the launch of new at-the-money (ATM) offerings of up to $21 billion in MSTR common stock, $21 billion in Variable Rate Series A Perpetual “Stretch” Preferred Stock (STRC) preferred stock, and $2.1 billion in Series A Perpetual “Strike” Preferred Stock (STRK) preferred stock.
Strategy also increased authorized STRC shares to 282.6 million and cut authorized STRK shares to 40.3 million.
MSTR’s stock was up nearly 2% in morning trade. Retail sentiment on Stocktwits around the shares dipped to ‘neutral’ from ‘bullish’ territory over the past day. Chatter fell to ‘normal’ from ‘high levels.
Strategy Expands Capital Raise To Fund Bitcoin Strategy
Monday’s announcement highlighted the continuing shift in Strategy’s funding mix. The company has been increasingly using its preferred stock, particularly STRC, to finance its operations and Bitcoin acquisitions.
This approach aligns with executive chairman Michael Saylor’s focus on “Digital Credit” as a mechanism for gaining exposure to Bitcoin while reducing reliance on common equity issuance. The use of multiple capital instruments also allows Strategy to diversify its investor base.
The expanded ATM programs provide Strategy with greater flexibility to raise capital incrementally, allowing it to tap market demand over time rather than through large, one-off offerings.
Retail Focus Turns To Bitcoin Milestones
The expansion of Strategy’s ATM programs comes after the company announced it had added over 1,000 Bitcoin to its holdings over the past week, spending around $76.6 million. The purchases were funded through prior sales of its Class A common stock.
Many users on the platform were attempting to forecast when the Saylor-backed firm would cross 1 million Bitcoin on its balance sheet.
The company has spent around $57.7 billion on buying Bitcoin since its pivot to a digital asset treasury (DAT). Strategy is sitting on an unrealized loss of around $4 billion.
Read also: Bitcoin Price Shoots Above $70,000 After Trump Says US-Iran Held ‘Productive’ Talks
For updates and corrections, email newsroom[at]stocktwits[dot]com.